Bank of America's Profit Surge Sparks Wall Street Comeback

Bank of America reported a significant increase in profits due to strong investment banking activity and improved equity markets. CEO Brian Moynihan expressed optimism for 2025, citing growth in deposits and loans. The bank's stock rose as the industry enjoyed a resurgence in dealmaking and trading revenues.

Bank of America has reported a substantial profit increase, driven by a resurgence in dealmaking and improved equity markets in the fourth quarter. Investment bankers capitalized on this momentum, contributing to a strong performance that echoes similar trends seen across Wall Street's major financial players.

CEO Brian Moynihan noted that revenue sources improved across the board, with notable growth in deposits and loans. Expressing optimism, Moynihan highlighted the bank's strong position heading into 2025. Consequently, shares rose 2.7% in premarket trading as investors reacted positively to the bank's outlook.

The fourth quarter saw Bank of America's investment banking fees soar by 44% to $1.7 billion. Industry-wide, global investment banking revenue surged 26%, particularly benefiting from North America's 33% increase. This rebound in dealmaking was mirrored by a robust equity market rally post-U.S. presidential election, as investors anticipated a pro-business climate under President-elect Trump.

(With inputs from agencies.)